An Gia Real Estate Investment and Development Joint Stock Company (HoSE: AGG) has just presented to shareholders a plan to offer 40.6 million shares to existing shareholders, aiming to raise VND406 billion.
Of which, the enterprise will use VND 148 billion, equivalent to 36% of the capital expected to be mobilized to repay bank loans in the first or second quarter of 2025. The remaining amount, the enterprise will use VND 190.3 billion, equivalent to 47% of the capital expected to be mobilized to invest in its subsidiary, Western City Company Limited, and VND 68 billion to contribute to another subsidiary, AGI & HSR Consulting JSC. The expected disbursement time is in the first or second quarter of 2025.
Of which, AGI & HSR has a charter capital of 1.5 billion VND, operating in the field of investment business management consulting. In the shareholder structure, An Gia contributes 50.09% of capital and Mr. Nguyen Ba Sang (Chairman of An Gia Board of Directors) contributes 49.9% of capital. As of the end of June 2024, An Gia lent this company 174.2 billion VND to invest in the Lacasa project, the receivable from loan interest is 75.6 billion VND.
For Western City, An Gia invested 703 billion VND to own 99.99% of the capital. The company is the investor of the West Gate project in Binh Chanh district, Ho Chi Minh City. The project has an area of 3.1 hectares, including 4 blocks of 20 floors, more than 2,000 apartments.
This year’s business plan is based on the handover and recognition of the Westgate (Binh Chanh) and The Standard (Binh Duong) projects. The company has recorded most of it in the first half of the year, so there will be no breakthroughs in the second half of the year.
According to An Gia's announcement, in case the proceeds from the offering are not enough as above, the company will prioritize the use of capital to repay bank loans, then invest in AGI & HSR and Western City. This shows that the company is under considerable pressure to repay debts.
Therefore, An Gia has continuously made moves to increase capital, in many forms. Previously, on September 24, An Gia passed a Resolution on implementing the plan to issue shares under the employee stock option program (ESOP). Accordingly, the company will issue 6.1 million ESOP shares.
At the end of the second quarter of 2024, An Gia's charter capital was VND 1,251 billion. Then, by the end of August 2024, the company completed the issuance of shares to pay dividends, helping to increase its charter capital by VND 312 billion, to VND 1,564 billion.
Thus, if the ESOP issuance is completed, An Gia's charter capital will increase from VND1,564 billion to VND1,625 billion. And if the 40.6 million shares are successfully offered according to the above plan, An Gia will successfully increase its capital to VND2,031 billion.
An Gia's current key project is The Gio Riverside, a project with a scale of about 2.9 hectares and 3,000 apartments. An Gia just started the project last June and is expected to sell in the fourth quarter of 2024.
In addition, the company is also investing in a series of other projects, of which the Westgate (Binh Chanh) and The Standard (Binh Duong) projects are the main driving forces for the company to set goals this year.
